Three Stocks Poised for Significant Returns Over the Next Five Years

Investing in stocks can be an effective way to maximize your wealth, especially when focusing on companies positioned for extraordinary growth. Industry leaders with strong earnings potential often see their stock prices rise significantly. Below are three stocks that have previously shown impressive returns and seem set to continue this trend over the next five years and beyond.

Mastercard: A Strong Contender with Growth Catalysts

Mastercard (NYSE: MA) has delivered impressive returns, more than doubling investments over five years and providing a sixfold return in ten years. The company has seen steady growth in revenue, net income, and cash flow, driving its stock price upward.

As one of the largest payment processing firms globally, Mastercard issues co-branded debit, credit, and prepaid cards through financial institutions. The company processes transactions through its network and earns fees alongside revenue from value-added services such as consulting, cybersecurity, and risk management. It boasts 1.1 billion cards in circulation and processed transactions worth $9.8 trillion in 2024.

MA data by YCharts. TTM = trailing 12 months.

Mastercard’s asset-light model allows it to maintain high margins. For instance, in its most recent quarter, revenue increased by 14% year over year, primarily due to a 15% rise in cross-border volume. The operating margin was recorded at 57.2%. For the fiscal year ending December 31, 2024, revenue grew by 12%, and the operating margin reached 55.3%.

With ongoing innovations such as deploying artificial intelligence and a shift towards digital payments, Mastercard is likely to generate substantial returns for investors in the future.

Waste Management: The Unsung Hero of Returns

Waste Management (NYSE: WM) stands out as an exceptional long-term investment. Though it operates in the mundane industry of waste collection and recycling, the company has yielded nearly 50% in total returns over three years, 160% over five years, and an astonishing 470% over the last decade.

WM data by YCharts.

Recently, Waste Management expanded its offerings by acquiring Stericycle, North America’s largest medical waste management company. This acquisition is expected to generate $250 million in synergies by 2027, doubling its initial forecast. In the first quarter, healthcare solutions contributed approximately 10% to total revenue, which rose around 17% year over year.

The company aims to enhance its core operations through further acquisitions, supported by a robust pipeline of opportunities. Despite a temporary pause on share repurchases to reduce debt, Waste Management remains committed to maintaining its dividends, having increased them for 22 consecutive years.

BYD: A Rising Star in the Electric Vehicle Market

BYD (OTC: BYDDY) is an electric vehicle (EV) manufacturer that is emerging as a formidable competitor to Tesla. In fact, with Tesla’s stock undergoing significant fluctuations, BYD has outperformed it across one-, three-, and five-year timelines. The company appears well-positioned for ongoing substantial returns.

Based in China, BYD has emerged as the largest EV manufacturer, surpassing Tesla in both sales volume and revenue, which exceeded $100 billion in 2024. While Tesla reported a 13% drop in sales in the first quarter of 2025, BYD achieved record sales for five consecutive months leading up to April. Additionally, BYD’s net income rose 100% year over year in Q1.

TSLA data by YCharts.

Moreover, BYD is one of the world’s largest battery manufacturers, providing a competitive edge regarding cost and supply. The company’s expansion efforts are substantial; it recently entered multiple new markets, including Switzerland and Peru, while also commencing the construction of a manufacturing plant in Cambodia.

Given its pace of growth and numerous developments, BYD appears likely to deliver significant returns to investors in the years to come.

Is BYD Company a Smart Investment Right Now?

Considering whether to invest in BYD, it’s essential to note that it was not included among the top ten stocks identified by the analysts. These ten stocks may also represent strong investment opportunities for future returns.

Take, for instance, Netflix: when it was recommended on December 17, 2004, a $1,000 investment would now be worth $623,685. Similarly, if you had invested $1,000 in Nvidia upon its recommendation on April 15, 2005, you would have a staggering $701,781 today.

The Stock Advisor team has reported a total average return of 906%, outperforming the S&P 500’s 164%. This record suggests that staying informed of their recommendations could benefit investors significantly.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Tesla. The Motley Fool recommends BYD Company and Waste Management. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.